Recently I was in a need of changing Contract Account based on the indicator in the non-character-delimited text file in which each line consists of set of data. Business scenario behind it is the following: on a set date each month bank sends the text file to the customer. In that file they specify who contracted direct debit service with the bank. The file consists of a number of lines, grouped in three types of lines (header line, data lines and footer). The data lines consists of several data, among which are contract account number and direct debit status (contracted / revoked). Data is not separated by separation character, but the lenght of each data is the same (meaning you always know the position of each data element).

Being a functional consultant with programming experience, I decided to write an ABAP program which would do the following:

• Upload the text file into the SAP
• Separate the needed data and fill in the internal table
• Check the Contract Account (read all its data)
• Change the Contract Account (update the Incoming Payment Method field with the value entered on the selection screen)

Checking SCN and other places I could find bits of code that helped me create the needed. The least documented thing was the BAPIs BAPI_ISUACCOUNT_GETDETAIL and BAPI_ISUACCOUNT_CHANGE. Thats why I decided to give the example of the whole program in this blog post, having in mind it could help someone who has the similar needs.

Prerequisites

I will assume you opened a new package (if needed) and created a new program in SE80 for this purpose.

Data

First, lets start with the definition of the data we will be needing in the program:

TYPES:

       BEGIN OF DD_STRUCT,

         line_type  TYPE c LENGTH 3,

         ntp_number TYPE c LENGTH 22,

         indicator  TYPE c LENGTH 2,

       END OF DD_STRUCT.

DATA : l_file              TYPE string,

            gv_line_space(256) TYPE c,

            l_testrn          TYPE c,

            w_return        TYPE bapiret2,

            l_ca               TYPE BAPICAPARA,

            l_p                 TYPE BAPIBPPARA.

DATA : it_file TYPE STANDARD TABLE OF DD_STRUCT,

            wa_file LIKE LINE OF it_file.

DATA : lt_cadata    TYPE bapiisuvkp  OCCURS 0 WITH HEADER LINE,

            lt_cadatax   TYPE bapiisuvkpx OCCURS 0 WITH HEADER LINE.

Defining our own structure, DD_STRUCT, will help us have a set of data in one place. The definition is connected with the position of the data elements in the text file: line_type data is the first data in the file line and its length is 3 characters. On the next position (which is fourth column in the text file) is the ntp_number data which is 22 characters long. The last data element starts at 26th column and its 2 characters long.

Local variables l_ca, l_p, l_file and l_testrn will hold the contract account, business partner, file and test run checkbox data. Global variable gv_line_space will be used to enter a new line when displaying messages, and w_return workplace variable will handle the BAPI return data.

Data definition is important, can not be skipped and should not be missconfigured. Every BAPI offers the possibilities to check the needed data types by opening it (in SE80) and doubleclicking on the Associated Type entry in Import, Export, Changing, Exceptions or Tables tabs.

Selection screen

In case you decide to expand the program and divide the selection screen into more sections, the following code might come handy. If not, just take the Parameters definition out and remove the b1 block definition:

SELECTION-SCREEN BEGIN OF BLOCK b1 WITH FRAME TITLE text-001.

PARAMETERS: p_file   TYPE rlgrap-filename OBLIGATORY,

             p_paymtd TYPE FKKVKP-EZAWE    OBLIGATORY,

             p_testrn AS CHECKBOX.

SELECTION-SCREEN END OF BLOCK b1.

AT SELECTION-SCREEN ON VALUE-REQUEST FOR p_file.

   CALL FUNCTION 'F4_FILENAME'

     EXPORTING

       program_name  = syst-cprog

       dynpro_number = syst-dynnr

       field_name    = ' '

     IMPORTING

       file_name     = p_file.

START-OF-SELECTION.

   l_file = p_file.

   l_testrn = p_testrn.

Since GUI_UPLOAD (used via CL_GUI_FRONTEND_SERVICES) does not accept p_file as an input parameter, we should fill the l_file local variable contents with the p_file contents. The same is done with the l_testrn/p_testrn parameter.

Note: If you need help with creating selection screens, you can use the program RSDBGENA (start it using transaction code SE38).

Importing the file

With the help of the SCN web, I concluded that the best way of uploading a text file is using  CL_GUI_FRONTEND_SERVICES and GUI_UPLOAD function modules. My file does not have field separator, which makes it even easier. Note: GUI_UPLOAD recognizes tab as a field separator. In other cases, you need to use either SPLIT function or some other way of handling semicolon or other separators.

In order to use the mentioned functions, we need to send the minimum of the data: filename (l_file) and return table (it_file). The definition of the it_file, type DD_STRUCT, will help this function automaticaly fill the needed table columns with the data, creating new table row for each file line read.

Besides FILENAME parameter, there are several parameters which could come handy: HAS_FIELD_SEPARATOR, READ_BY_LINE, HEADER_LENGTH, CODEPAGE and others (as always, you can check the possibilities in the documentation).

CALL METHOD CL_GUI_FRONTEND_SERVICES=>GUI_UPLOAD

   EXPORTING

     FILENAME                = l_file

   CHANGING

     DATA_TAB                =  it_file.

Once executed, we need to check for the errors. In case there are errors, we will display them. If not, we can continue with the execution of the program.

   IF sy-subrc <> 0.

     MESSAGE ID sy-msgid TYPE sy-msgty NUMBER sy-msgno

             WITH sy-msgv1 sy-msgv2 sy-msgv3 sy-msgv4.

   ENDIF.

Showing the read content

As a control of the read content, we can go through the it_file table and output the data. We will only deal with the lines of type "DAT", which is the code for the data line:

LOOP AT it_file INTO wa_file.

     IF wa_file-line_type = 'DAT'.

       WRITE :/ 'Reading the file: ', wa_file-ntp_number, wa_file-indicator.

Note: The loop line is written in italic. Regardles if youre using the code to output the read data, the loop will be used to go through the read lines and call the BAPIs. Corresponding ENDLOOP will also be written in italic in the end of this document.

As the total length of the contract account number in SAP is 12, and the length of the contract account number in the text file is 10, we need to add the two zeros in front of the read number:

    CONCATENATE '00' wa_file-ntp_number+0(10) into l_ca-account.

Reading the Contract Account data

Its always good to read the BAPI documentation before using it. You can do so by opening SE80, choosing Function Module and entering the BAPI name there.

BAPI BAPI_ISUACCOUNT_GETDETAIL expects CONTRACTACCOUNT as mandatory input parameter. For that purpose we defined l_ca variable and populated it with the data from the file (and subsequentialy it_table) in the previous step. As an output parameter, you can use RETURN, which will give you the error message if the error happens, or it wont return anything in case of success.

The table that will get populated as a result of this BAPI is lt_cadata. You can check the fields that will get populated by double-clicking on the bapiisuvkp keyword in the definition of the local table lt_cadata.

In case BAPI runs successfully, w_return variable will stay in its initial state. If there is an error, it will get populated with that information (for example, it will say that the contract account does not exist). If you want, you can output that message, as a measure of control.

CALL FUNCTION 'BAPI_ISUACCOUNT_GETDETAIL'

             EXPORTING

               CONTRACTACCOUNT             = l_ca-account

             IMPORTING

               RETURN                                  = w_return

             TABLES

               TCONTRACTACCOUNTDATA  = lt_cadata.

IF w_return IS NOT INITIAL.

   WRITE :/ 'Error:', w_return-MESSAGE.

ENDIF.

Outputing the read data

Assuming we did not get an error, our lt_cadata local table contains the states Contract Account data. Since we are changing the Incoming Payment Method data, we will print out the read data, as an info what was the previous information.

Also, now we have the information about the Business Partner for that Contract Account, and since that is the mandatory input parameter for our next BAPI, we will populate the l_p-partner variable here.

At the end of this section, we will clear the w_return variable so we can use it for the next BAPI.

    l_p-partner = lt_cadata-partner.

       WRITE :/ 'Contract account:', l_ca-account.

       WRITE :/ 'Business partner:', l_p-partner.

       WRITE :/ 'Payment method (previous):', lt_cadata-PAYM_METHOD_IN.

CLEAR: w_return.

Setting the new Contract Account data

When using  BAPI_ISUACCOUNT_CHANGE, in order to change any data, we need to state which data will we change and set the new value. For that purpose, two variables are used. First is lt_cadata which we already populated with all the information. In lt_cadata we will change the incoming payment method value into the one that the user entered at the selection screen (p_paymtd).

The second one is the matching variable lt_cadatax. In order to change a parameter in Contract Account master data, we need to put 'X' as a value to that parameter.

To make it more clear: lt_cadata-paym_method_in value will bep_paymtd, and lt_cadatax-paym_method_in value will be 'X'.

    lt_cadatax-paym_method_in = 'X'.

     lt_cadata-paym_method_in  = p_paymtd.

         CALL FUNCTION 'BAPI_ISUACCOUNT_CHANGE'

             EXPORTING

               CONTRACTACCOUNT            = l_ca-account

               PARTNER                               = l_p-partner

               CONTRACTACCOUNTDATA   = lt_cadata

               CONTRACTACCOUNTDATAX = lt_cadatax

               TESTRUN                                = l_testrn

             IMPORTING

               RETURN                                  = w_return.

IF w_return IS NOT INITIAL.

   WRITE :/ 'Error:', w_return-MESSAGE.

ENDIF.

BAPI BAPI_ISUACCOUNT_CHANGE gives us the possibility to run it as a test run. To make it easier to control, I put the parameter (p_testrn) to the selection screen. The same as before, if the BAPI run successfully, we will not get any data in the RETURN parameter. If, on the other hand, we get an error, BAPI will populate that parameter and we will be able to print it out using the stated code.

Commiting the transaction

The last step in the program is commiting the transaction. If we skip this step, the new data will not get written into the Contract Account master record. We will commit the transaction only if we didnt get an error from the previous step.

    IF w_return IS INITIAL.

       CALL FUNCTION 'BAPI_TRANSACTION_COMMIT'

        EXPORTING

          WAIT          = 'X'

        IMPORTING

          RETURN    = w_return.

        WRITE :/ 'Payment method (new):', lt_cadata-PAYM_METHOD_IN, gv_line_space, gv_line_space.

       ENDIF.

     ENDLOOP.

If you want to try the code yourself, just copy the code (without my descriptions and comments) into a new program, activate it and run. Its purpose its to show the usage of importing the text file to SAP, populating local table, extracting data from the text file and changing the Contract Account master record using BAPIs.

I hope this instructions and code examples will be useful to people who have similar business needs or who want to see an example of how to use the BAPI_ISUACCOUNT_GETDETAIL and BAPI_ISUACCOUNT_CHANGE BAPIs.

We are proud to present three fully configured best practice
example demos!

Our customers have often told us that our new product modeling feature for Utilities (PMU),  the ‘Product Finder and Configurator (PFC)’ and the Mobile UI in Enhancement Package 3 for CRM 7.0 are flexible tools that offer unrivaled configuration and integration options.

They also however wanted to see a preconfigured modeling example. We are aware that since the modeling framework has a completely open and flexible structure, providing examples of how to use this would be extremely useful.  To respond to this request, we have provided three comprehensivepreconfigured example demos.

These example demos enable you to familiarize yourself with the broad range of features provided in the PMU and PFC. You can of course copy the templates to create your own examples, make adjustments, perform tests and/or use the examples for internal training courses, or simply use them to broaden your own understanding of the topic.

The examples provided can be used to run all available functions as if the data had been entered in your system directly.  You can for example create new versions using version management. You can of course extend the examples to meet your requirements, for example by creating an ERP backend integration with the ‘Simulation Workbench (SIMU WB)’ using your own data.

The examples are available in your system automatically as of SP06 Enhancement Package 3 for CRM 7.0 and can be activated in your own customer system in a predefined namespace using a report that has been created for this purpose.  You can use a second report to delete the examples once you have finished using them.

We intend to modify the examples at regular intervals or deliver new examples so that you can always keep up to date with the latest developments!

We have provided comprehensive documentation that describes the content and scope of the examples and information about how you can activate the examples in your System. You find the documentation on SAP Service Marketplace under PFC Demo Scenarios SAP CRM 7.0 EHP3 SP06.

If you want to use a step-by-step approach, we recommend using the SAP Service Marketplace, where a wide range of additional information is available to you in slides and recordings of the EHP3 functions.

(SAP Service Marketplace is just for customers and partners: read what it is and how you can get accessSAP Service Marketplace Overview and FAQ.)

1. The example demos also provide a whole range of other important benefits, some of which are listed below:
   
   
   
   
2. We provide three example demos that have been modeled using different product modeling objects (PDOs) but the same methodology (PMU):

2.1 PFC OData Demo

Internet User searches for product offer and agent responds to data entered:

2.2 Demo PFC Call Center

Identification in the IC and multi-premise scenario:

2.3 Demo PFC Search Help

PFC as a search help for products in the quotation and contract:

2.4  Important notes:

All three demo scenarios are delivered with SP06 EhP3 for CRM 7.0 – see SAP note 2047982 for technical information.

3. The demo scenarios show the central modeling concepts used, such as:

3.1 Product Types

3.2 Simplicity

3.3 Flexibility and Integration

Running an efficient utilities call center requires a well-tuned software solution to support the fast paced work environment of call center agents.

You probably know that you can configure and enhance the SAP CRM for Utilities application to suit your requirements. Reading the customizing documentation and application help is always good, but sometimes you would like to understand the pros and cons of the different settings.
The document Setting up a Best-Run Interaction Center can help you with these questions.This document also offers tips on how to perform enhancements. 

For example, which settings can influence the Account Identification process?  What configuration is more suitable for your call center?  In this document, you will find details about the relevant customizing options as well as the pros and cons of each configuration. 

Would you like to set-up an alert if the confirmed account has, for example, a planned disconnection?  Would you like to change the way the address is displayed based on the country your clients are calling from?  You can find these answers and many more, in this best practices guide.

Who is the guide for ?

The guide is primarily intended for customers using SAP CRM for Utilities EHP2 and lower. 

Use this document to:

• Learn about functional and technical details of all relevant utilities call center processes
• Understand best practices, tips and tricks, and enhancement options
• Improve your call center implementation
• Avoid usability, process and performance issues

Free Text Search is an exciting new feature of the Utilities Interaction Center which takes advantage of the power of HANA.  It allows you to enter search terms in a single text field to search for business partners and premises. 

What are the steps required to activate Free Text Search?
SAP Gateway and SAP NetWeaver Enterprise Search including a connection for HANA DB must be set up, as well as activating relevant Business Functions.

All of this is explained in detail in the document Set-Up Guide: Free Text Search in  Interaction Centerwhich is available on the SAP Service Marketplace.

Who is the guide for?

The guide is intended for System Administrators and Technical Consultants. 

Right now, the energy industry in sub-Saharan Africa is at a crossroads. Faced with booming demand from a growing industrial sector, urbanisation and an impatient consumer base, the region’s energy utilities must deal with a unique set of challenges that can ultimately drive away both local and foreign investment and affect entire economies if they are not overcome.

We’re all too familiar with some of these challenges: ageing infrastructure that breaks down at inconvenient times; the need to optimise assets; the problem of meeting the demands of increasing urbanisation and business growth, while dealing with growing environmental considerations. Nobody said it was easy.

But by using modern ICT tools smartly, energy utilities could be keeping the lights on more effectively by having insight into critical areas like asset performance, consumption patterns, predictive maintenance, load forecasting and any anomalies.

Fact is, Africa’s utility companies can no longer afford to rely on outdated ICT infrastructures. The stakes are simply too high. The energy and natural resources sectors are the backbone of Africa’s economy and are vital to the current and future growth and well-being of many countries. New oil and gas discoveries in Africa are opening new opportunities for growth, and mining continues to be a key revenue generator in many African countries.

One of the keys to success for any utility in the world today is effective data management. Utilities need to not only gather large amounts of information, but critically, understand that information and turn it into insights that can be acted upon.

By doing this, they can diagnose and even predict issues before they happen, leading to increased asset effectiveness, the prevention and real-time handling of unplanned downtime, better daily forecasting and even the ability to predict demand. And all this can be done from a mobile device whilst sitting at an airport.

Having reliable data that is collected effectively can provide huge competitive advantage. It allows energy companies to operate efficiently and see where and when energy discrepancies occur. This ultimately leads to reduced costs once the system is in place.

A simple example is meter readings, which can become much easier to collect and to analyse for usable insights into how energy is being used for individual consumers, in specific regions or even to detect fraud. With insights like these, utilities are better equipped to handle their customer needs, respond to those needs and better match supply and demand.

Another major challenge facing our utilities right now is that they don’t have the right levels of supply chain visibility. In other words, they lack the ability to know what is happening in all aspects of their organization and thus are not able to predict problems and quickly respond to the changing needs and challenges on the ground.

With an adaptive supply chain, utilities can intelligently adapt to changing market conditions and synchronise supply to demand by having distribution, transportation, and logistics processes integrated with their real-time planning processes. The result: energy procurement costs decrease and improved grid operations mean that maintenance costs are reduced.

And once utilities are running what they have more efficiently, they are then able to look at more innovative platforms to differentiate themselves and create new revenue streams, interact in new ways with stakeholders, adapt more quickly to the changing business environment and improve productivity, transparency and decision-making.

Energy companies in Africa cannot afford to be left behind. They don’t have much time, though, which is why the emergence of cloud-based data and analytics solutions could emerge as the unlikely hero of energy crises across the continent. On the flip side, there really is a bright future for those that invest in the right data management infrastructure. Utilities that are functioning at the top of their game will naturally attract investors and ensure their place at the forefront of the African energy market for decades to come.

Contact Energy is a vertically integrated generator and retailer of electricity and gas in New Zealand. They serve about, 500,000 customers every day, 24/7. Their customers’ expectations are changing quite rapidly.

The world of the homogenized mass market has gone and customers are seeking individualized service. What they needed at the core of their business was technology that would enable them to industrialize and remain low cost, but also enable them to add modules and extra capabilities to meet customer expectations.

Mark Corbitt, General Manager ICT, Contact Energy New Zealand stated, “The major components we deployed were CRM, ECC modules, including the industry services for utilities, which was a major part of it, stream serve, and open text…we initially started with MaxAttention from a project perspective. We needed access to expertise. There were two, what I would term ‘top-line’ SAP experts that spent really a few days with us. So after just a few days we were honing and focusing on a couple of issues, we saw 30 percent improvement in our CRM performance.”

“The real benefit to that is not that the system performs faster but the outcome for our business is that what we call average handle time, the amount of time a customer takes on a call with us, dropped by 100 seconds. Now that’s substantial because it means you can take more calls, it means you can answer a customer’s query much more quickly, which obviously they’re happy about, and the cost to serve overall decreases as well. And that’s a fantastic example around the benefits of Max Attention,” Mark added.

James Kilty, General Manager Sales and Customer Experience, mentioned, “It was critical to me to get assurance around the subject matter that I’m not that comfortable with, ICT, and that we were adopting best practice processes and systems in our implementation. So that advice and support from our parent company, coupled with the utilization of MaxAttention has made the whole process a heck of a lot easier for us.” He continued, “We went live with our system 6 months ago. At that point we set out a forward path for the stabilization of the business and then a real push into starting to drive the benefits of the business.

With the work we did, prior to go live on testing our performance work and the reviews and support we had from MaxAttention, the stabilization process for us here at Contact Energy has gone very well.” Mark added, “What you can do from the business side of things offsets multiple times the additional cost from a technology perspective. Looking at MaxAttention as a part of that, it’s ‘how’ we compress the speed at which we get those business outcomes by making sure the technology operates as ‘effectively’ as possible. That’s probably the key for introducing MaxAttention into the SAP landscape and as part of the implementation.”

Mark continued, “All of the transactions have been sub-3 seconds, which from a performance perspective immediately after go live is for us pretty spectacular. The actual batch processing itself has fallen within the window 90 per cent of the time early on and right now it’s 100 per cent of the time.

The key point for me around both MaxAttention and Active Embedded – is that you don’t need to know the right questions to ask. You get two weeks of attention and you see a 30 per cent improvement in your transactional performance results and a reduction in handle time. That’s fantastic.” James stated, “The system implementation is a challenging thing in and of itself, and it’s really important that you get first class advice to do that really well because the last thing you need when you’re trying to transform your business and drive a culture change is to have a system that isn’t working. And MaxAttention is a critical part of making sure you get that right.”

The contentious question around shale gas keeps creeping up on the agenda and with the South African Government’s promises of decreased unemployment an ever-present energy supply issue and the varying groups of lobbyists constantly on the increase, it seems that neither fracking nor discussions regarding the topic are going to disappear anytime soon. Here we look into some of the challenges and aspects around shale.

It is not only the current critical shortage of energy in South Africa (worsened by the delays at the Medupe and Kusile power station construction projects) driving discussion, but also increased energy requirements from industry and urbanisation as well as the need for cheap and efficient energy. Renewables
such as solar and wind - while extremely clean and constantly reducing in cost per watt - still remain expensive as well as rather inefficient in relative terms,
not to mention the fact that this form of energy generation still remains very limited in terms of the number of projects/capacity coming online.

It became abundantly clear from President Zuma’s State of the Nation address that energy is a key priority for South Africa and that shale gas is absolutely on the agenda. The country’s current energy shortage, excluding requirements for the next 10 years which we need to take into consideration, is already estimated by some sources to be in the tens of thousands of Gigawatt hours. Suffice it to say that the shortage is immediate and growing and that there is a dire need for solutions which can be delivered in an environmentally friendly manner and gain political consensus. From this perspective, shale gas might look like a good “fix” as it - from a pure production perspective - could be up and running relatively quickly. (The realities surrounding the entire process and logistics etc is discussed later.) 

Governments position likely stems from three key factors:

1. Meeting energy demand which is at critical levels and slowing economic growth
2. Unemployment: the immediate effects on employment are expected to be significant and would be felt in the upstream, supply chain and importantly also downstream operations.
3. Attracting capital: this would be expected to ensure continued foreign direct investment (FDI) in sustainable capital projects.    

These are likely the reasons motivating governments’ eagerness to progress with the shale gas project(s).

That said, many aspects have to be considered and remain to be discussed before any action is taken:

• Skills: Fracking brings the demand for specialised skills and there needs to be an active skills transfer program to avoid only using expatriates
  to run and manage these sites and create sustainability.
• Ownership: Current draft legislation sees government taking a 20% share in any fracking venture with the right to purchase another 30% at “market
  related prices”. This needs consideration because on average in the industry, these multi-million dollar investments in exploration have a 40-75% chance of failure. Doing so reduces the incentive and increases risk significantly for any investor. Both for risk-reward in production as well as the as yet unclear valuation to be used for the purchase of a future 30% share.
• Capital: significant capital for the investments in exploration and production is likely to come from offshore. Many global majors are probably keen on investing, but aside from the ownership issue above, the question is whether we are able to incentivise them on keeping cash (profits) in-country.
  As this impacts the real impact and contribution to the local economy.
• Supply chain & downstream transportation/processing: The extraction of gas is really only a small part of the total challenge. If we look at where
  these known deposits sit, the challenge would be how to find and manage many suppliers in remote locations such as the Karoo and more importantly how to plan and handle storage and transportation to where it is needed. This will also require the funding of infrastructure etc. Is there capital and
  consideration as to who will fund this (whether rail or improved roads etc).
• Land ownership: Given that mineral rights in most cases belong to the government and that, as individuals, we typically have a fear of the unknown and many questions over the possible environmental impact, there is little incentive for people to support such ventures and it is likely that private
  land owners will push back wherever they can.
• Potential Environmental impact: There are two key environmental concerns, firstly; where does all the water come from (fracking requires significant
  quantities)? Secondly; in some systems it is claimed up to only 50% of the fracking fluid is recovered as the rest remains underground and it is argued that this can leach into soil and ground water. (This is now being mitigated through closed-loop systems, greener chemicals, well construction standards and is highly dependent on the seal rocks and general geological structure and remains highly contentious). Fracking fluids contain a number of chemicals that perform a multitude of functions such as acting as carriers, preventing corrosion, viscosity regulators, stabilisers etc.Can this potentially lead to short or even longer-term environmental issues? This question is hard to answer as many factors play a role and again,
  the long –term consequences are as yet not proven. Would, for example, there be funds set aside for possible environmental issues that do occur?

Alternatives: Ideally we would use this discussion as a segue to a broader conversation around all types of energy production and the sustainability from an economic, environmental and political aspect. In general, fracturing cost efficiency is high compared to other renewables which has also prompted the high focus. Here we should consider the real opportunity costs and impacts of various forms of generation, including renewables, nuclear and co-generation, as well as their longevity.

Unfortunately for now renewables are relatively more expensive but could it nevertheless be the time to make that step-change and invest in improving the technology and using the abundance of, for example, sunlight we are blessed with, given that enough energy can be produced form 10 minutes of sunlight to power the earth for a year? A number of interesting alternatives are already emerging throughout the country including hydroelectric facilities such as the one on Johann Rupert’s L’Ormarins wine farm, the various sugar-cane bagasse that already powers multiple sugar mills in the country and other projects in the first three rounds of the renewable energy program for independent power producers (IPP’s).

And finally: It’s not all about creating new forms of energy generation                       

We mustn’t forget that as significant as energy creation is, energy saving through tight measures could lead to savings that are equivalent to a generation project in itself.

Various sources allude to Eskom’s Integrated Demand Side Program having saved over 2,000 MW of energy through their initiatives which is
noteworthy. The continued efforts and technology improvements (such as LED lighting, solar heating etc.) should be a clear part of any strategy.

From the above it becomes clear that there are many issues that need to be addressed and this list is by no means exhaustive. The key here is to ensure
all key stakeholders are involved and all possible options and ramifications considered.  It is likely to be a lively debate as government aims to provide the energy as well as jobs it promised whilst pitted against those with environmental concerns as well as rival political parties.

Like all industries, the utilities industry is increasingly looking to cloud technology to support business needs. More and more decision makers want to understand how to expand into the cloud without abandoning the architecture they’ve built to support their business processes.

Ability to eat your cake and have it too

Construction is a very relevant process in Asset Management. In fact, it is the most relevant from the corporate budget perspective (capital expenses are used in the process) as maintenance use to have a fixed budget and the expense is operational. From the IT support perspective Construction is a more complex scenario,  think for example new connections management or the construction of a power plant. From the other side of the coin, maintenance has more relevance from the branding perspective as to avoid outages and keep the infrastructure working at optimal cost.

When discussing on how SAP can help organisations to manage this process,  Solution Architects face the challenge of understanding the complex  requirements and identifying which are the right components which may help companies to run effectively and simple such processes.  Relevant example is building a new substation while the most  can be identified in New Connections, which is in fact a very complex workflow across different departments with an average of thirty variants in the case of having only one energy (electricity, water or gas) such as increase capacity for a premise, building or location, new developments (building and construction sites) and may even include some commercial steps.

1. Corporate Assets lifecycle. In red the scope of this text

Overall solution  breakdown

Three major areas are identified to cover such process: Long term Planning, Mid Term Planning and Detailed Planning and Execution.  Each  of these areas have several dedicated processes which are very much influenced on the degree of contribution of internal resources:  would this be a turn key project (this is all done by external contractor), by internal resources (both labor and material) or a mixed approach as can be seen at the below copied snapshot of a case study?.

2.Case Study NTPC Project (India) – ‘Concept to Commissioning’ Scenario

Depending on  these requirements, the overall solution proposed may balance from the usage of sophisticated purchasing solutions like Ariba or SRM to a more Engineering  Approach where the solution should be more related with PLM application portfolio.  In both cases, the backbone of the solution is Project System (PS) solution, where detailed Resource Planning, Cost Planning, Approvals and Scheduling & Dispatching of activities is performed. Execution of the activities are performed using Work Orders for Construction. This picture may ilustrate from the object – datamodel perspective how the process data flows:

3.Project and Program Planning: High  Level Architectural View (green objects located in ERP)

This picture shows a process based in the usage of internal resources and does not reflect the integration with purchasing systems (MM, SRM, Ariba), which may increase complexity of the flow diagram. It does not mean that is not relevant as, for example, many projects are assigned by Tendering processes (Request For Purchasing) or “hybrid” scenarios, such as hiring contractors but providing own materials are very regular.

Investment management or Portfolio Management?

As highlighted previously, the central element of the Business Scenario is the Project System and it has to syncronize its activities with the Budget: where does it come from, how is it validated, where is an ivestment decision allocated?.  In this stage, Solution Architects have to suggest which is the correct  olution to support the budget and investment process and how feasible is for the organisation. Two choices, complementary, exist:  Investment (funds) management and Portfolio Management.

As can be seen at the picture above, the decision on suggesting Investment Management (IM) only may have a clear impact in the implementation effort as it is part of the ERP functionality and enable project effort to build a consistent Project System fully integrated with other ERP elements. For companies  currently  approaching this process (not companies already using SAP ERP) this is a very simple and effective way of implementing such critical process and, for an initial stage, IM may contain enough  functionality for Investment and Budget Management: 

4.Investment Management:  Process Flow and SAP Objects

Therefore, an implemention roadmap based in a  “two or even three steps” approach for Capital Projects is the average suggestion by solution architects: First phase a critical baseline scope being PS and IM as can be seen at the picture above copied below being a second step Portfolio Management to improve, record and track decisions.    This component, named SAP Portfolio and Project Management enables Managers the linking of ideas and strategies with project data, workflows, and business processes. It becomes a structure above the project System to  Manage scope, timeline, and budget of projects in an integrated way enabling cash flow tracking and high level control of the execution and progress of projects.

                          5. Portfolio Management:  how it integrates with Project System

Work Orders – Compatible Units

Additional phase, a third one, has been indentified in the area of project execution.  This is the integration among the engineering department and the works execution.  Designers and engineers need to define and estimate quickly and efficiently the work to be performed. On this purpose there is a functionality available in the ERP called Compatible units (CU) which combine standardized and repetitive units of work for a certain technical object (e.g. Install, Repair, Replace 40ft Pole) by combining Labor (what, who, qualification, how long), Materials, Tools, Costs, Resources External / Internal and Accounting Rules.

6. Case Study at ESB: Usage of Compatible Units in the construction workflow

Additional subjects to be considered prior the Reconciliation of Materials & Expenditure  and Contract closing  are the reporting and the asset commissioning.
While Business Intelligence platform may favour a management analysis of consolidated project view and comparison, detailed analysis is already available in ERP instance, like Project Plan versus Actuals.   Asset Commissioning has two dimensions which can be automatized in the process workflow:   capitalisation of assets (create the corresponding Financial Asset ready for depreciation process) and Creation of the Technical Asset with all its relevant data for maintenance and operations (Take over – Hand over of data).

The fundamental changes utilities globally are facing and what they can do to stay relevant to consumers

I decided to post this blog to start a discussion about exciting but also somewhat scary developments I am reading, hearing and see happening myself in regards to the the energy / utility markets.

I hope you enjoy the read and am looking forward to hearing from you!

Part 1: The global trend of shrinking revenues & margins, disrupting technologies with the consumer at the center

Part 2: Meet the competition that may better understand and serve the consumer

Part 3: “Innovate and partner” - What utilities and retailers can do and how enterprise software can help them win.

At SAP, we have for a long time drawn a line between deregulated competitive markets and regulated markets with vertically integrated utilities. However, when I look at marketing, customer sales and service operations today, I believe that this difference is disappearing.

Let’s briefly look at the regulated markets. Competition from technology and energy companies operating outside the utility sector has emerged in recent years. These new competitors cannot be regulated by utility commissions It is also quite astonishing that these effects are quite similar to what competitive retailers and distribution companies have been experiencing for some time. Moreover, it fortifies the belief that the traditional business model is in danger no matter what market structure is in place.

As a utility customer myself I can speak from personal experience.  When I installed rooftop solar at my home this year I witnessed first-hand how confusing today’s regulations are. So many rules that intent to keep up with the rapid technological change while trying to salvage the traditional business model and finally also attempting to bridge the gap between what consumers desire and what utilities need to deliver. The results: Uncertainty for utilities and consumers alike.

What do we see in competitive and traditional regulated markets?

• Revenues and margins from sales are shrinking while utilities face new requirements and competition from companies operating outside their strongly regulated markets.
• The way energy is produced, distributed and sold is changing. This changes how utilities need to market, sell and service current and new offerings as well as how they need to organize their companies.
• Utilities and retailers are targeting today’s and tomorrow’s consumers with innovative offerings and well-thought out marketing messages. Unlike in the past, not only  bill-paying customers are in focus but all consumers.
• These changes are happening globally.
  The trend might develop at different speeds in the regions.

I find Accenture’s study “The New Energy Consumer Handbook” a great read. If you don’t want to spend the time to read the over 200 pages, I would like to point you to a nice summary Accenture just recently published in the Intelligent Utility Magazine “Architecting for Consumerization”. You will find it on page 8.

(http://energycentral.fileburstcdn.com/IntelligentUtilityMagazine/2014/SeptOct14.pdf)

In the North American press, maybe driven by its proximity to Hollywood, describes the trend as the “Utility Death Spiral”. The utility death spiral describes the “end game” of the developments described before where the century-old business model of the regulated utility market completely falters.

As we know, this business model is based on centrally produced energy supply distributed over a centralized grid to consumers. Revenue from selling energy to consumers then pays for operations and infrastructure investments over typically long timeframes of 20-30 years. Moreover, the prices are inflated to additionally provide profit to governments and investors.

I agree with many analysts and authors that utilities will probably not die completely. However, utilities are experiencing a partial financial exodus fueled by customer defecting from the grid basically using a competitor product instead of the utility’s. However, It will be just a matter of time until these revenue losses become critical for the utility. For example, lost revenue cannot be invested in infrastructure as originally planned.

Utilities are certainly aware of the developments affecting them. Recently at the North American SAP Utilities Conference in September, a panel of utility executives from electric, gas, and water utilities agreed. The consumer is the major factor driving change in their business.

In the next part of this blog, we will dig deeper. We will look at several reasons for this development, competition being one of them, and why people (or consumers) are at the core of these brave new developments.

The consumption and meter reading information of electricity, gas, and water is increasingly captured in the form of equidistant time series values.

The volume of time series data to be processed across the IT system landscape is growing at a tremendous rate.

In this document, SAP IS-U/EDM’s import and export interfaces are discussed in more detail in order to illustrate the various alternatives including the advantages and disadvantages to SAP customers and implementation partners.

The following aspects are considered:

• Performance and use of resources, such as memory requirements
• Functionality
• Reliability of data transmission

The document is published on the SAP Service Marketplace and can be accessed by SAP customers and partners.

We are not doing ERP

I recently spent time with a CIO who explained that the Executive Board of the Utility Company had decided they would “not do ERP” as part of their IT transformation. Like many companies, they see ERP as synonymous with what Gartner describes as a monolithic ERP megasuite. They do not want a complex, high cost, inflexible ERP that business people will not want to use.

I couldn’t agree more.

You can characterise the monolithic ERP megasuite as:

• Integration trumps agility and fit to requirements
• Single vendor and technology stack
• Business disillusioned by poor usability
• Slow to react to business changes
• Enhancements inhibit upgrades
• Increasing subverted by business users adopting point Saas solutions

In contrast Gartner describes a Postmodern ERP Strategy  as:

• User Centric
• Based on loosely coupled applications not a single product suite
• Driven by the nexus of forces (Information, Social, Mobile, Cloud)

Why are Utility companies drawn to a Postmodern ERP strategy? Utilities seek to provide a safe, reliable and value-for-money essential service. This involves striking a balance between performance, costs and risks over the life cycle of network assets, ensuring  the health and safety of employees, customers or the public. Major changes to core ERP and Asset Management systems are inherently disruptive. Utilities often need to focus on optimising and augmenting their existing systems, rather than replacing them.

So if the ERP Megasuite is dead where does that leave the 2640+ Utilities around the world that run their businesses on SAP?

The good news is that SAP has embraced Postmodern ERP like no other.

Augmenting ERP and Asset Management

SAP has invested heavily acquiring companies that provide complimentary solutions to core ERP and Asset Management systems. These products widely support non-SAP core solutions. For example SAP Work Manager, previously known as Syclo is the most widely used mobile solution for IBM Maximo sites. It continues to be rolled out at Water and Power Utilities today that use no SAP ERP solutions. Business Objects solutions are used with any ERP and Asset Management system around the world. Similarly Cloud based solutions such as Ariba (procurement) and Successfactors (HR) are suitable for any IT landscape no SAP ERP is required.

SAP now offers a range of best of breed solutions that are designed to augment existing ERP and Asset Management Systems covering areas such as:.

Simplifying ERP

As well as augmenting ERP with best of breed point solutions, SAP continues to dramatically simplify the core ERP solution. As Gartner points out, ERP continues to play an important role moving forward. It can reduce IT costs by up to 40%, but more importantly it drives business value. This is why SAP is addressing the challenges of monolithic ERP megasuites head on. The best part is that you don't need to rip and replace your existing SAP ERP system but can adopt each of these innovations over time at your own pace.

User Centricity. A major criticism of monolithic ERP megasuites is poor usability.  SAP continues to expand the Fiori next generation user experience across core ERP, aimed at simplifying the experience of all users and especially casual users.  There is a great online tool to calculate the benefits of Fiori http://www.sapcampaigns.de/us/UX_Calculator

Agility. Monolithic ERP megasuites promised one system to replace disparate point solutions. However the breadth of scope and system enhancements often led to complexity.  SAP is simplifying core ERP applications based on the SAP HANA database. The first application is SAP Simple Finance. Because of the power of HANA, SAP has removed redundant tables and functions that were required for scalability on traditional databases.
This helps to eliminate reconciliation, reduce batch processing, enable real time reporting and underpins a new User Experience that is second to none. This is the future of SAP ERP.  For more information on SAP Simple Finance refer to the following blog.http://scn.sap.com/community/epm/financial-excellence/blog/2014/09/18/implementing-sap-simple-finance

Simplicity. The number one business challenge of our times is complexity. In the past monolithic ERP has been a villain in the drive for simplicity. The SAP HANA database helps to change the game by simplifying your IT landscape. This was a key message from Snohomish County PUD at Sapphire.

SAP also supports core ERP applications on HANA in a private cloud. The HANA Enterprise Cloud is offered by SAP and partners like IBM. This allows Utilities to significantly reduce the complexity of provisioning and administering their own infrastructure and ensures that they will always have up to data software from SAP so that the latest innovations will be available. This also allows you to consume core ERP functions as a service rather than having to buy upfront perpetual licenses.

Striking the right balance

Gartner warns that “Postmodern ERP will create new integration, analytics and application management challenges… there is a risk the landscape could fragment into a new form of the "classical," best-of-breed approach, with all of its inefficiencies.”

As always, integration is one of the key differentiators for SAP. Rather than being a software supermarket selling disparate cloud applications and integration technologies, SAP’s DNA is to provide applications that seamlessly work together. While this is still work in progress for some of SAP’s public cloud acquisitions, the previous experience of integrating Business Objects illustrates SAP’s commitment to providing end-to-end solutions. Integrated hybrid
public cloud, private cloud and on premise solutions is a key element of SAP’s simplification strategy.

So when the senior management of your Utility says that they will “not do ERP”, I encourage you to agree with them and reframe their thinking that while monolithic ERP megasuite is a thing of the past, the next generation of Simple, User-centric, ERP in the cloud should be part of your IT strategy. 

Gartner recommends that “Postmodern ERP is about striking the right balance between the value of an integrated core ERP system augmented by more user-centric, cloud-based applications.”

I couldn’t agree more.

Product actions, abbreviated to ‘actions ‘as a standard BRFplus term represent a utilities-specific BRFplus component usage that is assigned to the product header.

For more information about the definition and application of BRFplus usages see Product Modeling for Utilities SAP CRM 7.0 EHP3.

The product action can be used to trigger user-defined actions.

Typical actions in BRFplus include:

• Call Procedure (execution of user-defined static methods and functions such as setting the status for a document according to specific conditions.)
• Log Message (such as writing messages to the application log if defined triggers apply.)
• Raise Workflow Event / Start Workflow (such as an authorization workflow for specific actions or discounts.)
• Send E-Mail (such as sending an e-mail to an administrator for specific products that are no longer to be sold.)

A specific trigger for the product action is available that is predefined in the function. The trigger can be selected flexibly and can contain any coding. This means that entering a product that is defined for product actions triggers an action or the modification of relevant configuration attributes that are defined in the product action. A product action can also respond to customer or system-specific events. The flexibility of the triggering actions or values for a product action means that they can be used in a variety of different ways.

However, when the product action is executed for this component usage, typically no value is returned or the existing return value is not processed by the system.

You can usually create the product action using a decision table (available as of SP06).

In the decision table, you first choose the type of action to be created, enter the triggering parameters and define the action in detail.
It can be helpful to use the context parameters in the BRFplus editor here.

The following describes a specific product action in detail:

Use Data Entered as a Search Help During Identification

Example demos were made available with SP06 CRM 703 (see PFC Demo Scenarios).

One of these examples refers to an OData Service. In this example, a call center agent checks the data entered using the service by accessing the corresponding task in the inbox. Following this check, the user navigates to the identification where they can identify the business partner and premise or create them if they do not already exist.

The system transfers the data entered here to the corresponding search fields automatically. See slides 7 - 14 of the linked PFC Demo Scenarios document.

This is done using a product action that responds to the event ‘Request for Identification‘ and uses a method call to make entries in the fields in the identification area using the BRFplus rule defined. You find the event registration as a context parameter in the function.

This specific BRFplus rule can be generated manually or automatically and shows an example of how any methods or functions can be called from the BRFplus context.

To create your own mapping rule, proceed as follows:

1.  Log on using the role ‘UTIL_SALES‘.

2. Navigate in the PMU to the product (with the role PDO in this example), switch to the Edit mode and select the first row in the left hand section. The rules at product level appear on the right hand side.

     Choose New in the product actions area.

     On the next screen that appears select the target application (according to the component usage selected) and the

     entry highlighted in yellow here. Now choose ‘Create and Navigate to Object’.

3. The BRFplus rules editor appears. Enhance the context to include the attributes that are to be transferred in the method call. First choose the origin of the parameters.

4. The selection of attributes takes place in the next step, in this case using the first name of the business partner.

5. Assign the search criteria for the business partner under ‘Mapped Parameters‘.

6. You can see the event registration that is generated automatically.

You can select additional parameters in the same way here. Once all attributes required have been included in the contexts, you perform the following steps to assign the attributes to the fields in the identification area.

7. Display the details of the search criteria. Choose a context parameter for the relevant search criteria in the identification (business partner first name in the example).

8. Choose the corresponding object.

9. This completes mapping. The overview shows the search criteria that have been mapped for the identification.

10. Save and activate your BRFplus function for the product action.

11. Check the product action by executing the assigned PDO in the role UTIL_IC, make entries in the fields and navigate to the identification area or create a quotation from the Product Finder and Configurator.

In the first part of this blog we discussed how utilities globally feel pressures that will redefine the century-based business model in the utility sector. Finally, consumers everywhere have exciting options in terms of energy supply. In this second part of the blog, we are taking a look what drives the change and how this may play out over time.I will summarize the main drivers. For the brave, I have added some more detailed discussion below.

Part 1: The global trend of shrinking revenues & margins, disrupting technologies with the consumer at the center

Part 2: Meet the competition that may better understand and serve the consumer

Part 3: “Innovate and partner” - What utilities and retailers can do and how enterprise software can help them win.

Driver No 1:
Grid defection THROUGH RENEWABLE ENERGY and increasing levels of distributed generation
One cannot fight new technologies that are perpetually becoming cheaper, more attainable and popular.

http://www.smartgridnews.com/artman/publish/Business_Policy_Regulation/Why-utilities-will-soon-be-obsolete-in-HI-and-CA-and-then-in-your-state-6385.html

In the US, especially the proliferation of rooftop solar drives revenue loss for utilities. On a personal note, I installed a 5 kW system at my house in May 2014. I will be paying $2500 less to my utility this year since I am estimated to produce 6.5MWh myself. The cost of the system has become acceptable with a payback in ca. 6 years. As usual with technology, the solar panels and required equipment have become so much more affordable even without tax incentives. Nice, free market competition at work. Multiply these numbers by hundreds of thousands if not millions of customers in the US alone. You get the picture.

In the next 3-5 years we are expecting the holy grail of “solar in a box” (solar plus battery storage) to become viable for the markets.  Many consumers including myself will contemplate disconnecting from the utility grid for most of the time.

Driver No.2
Meet the competition that might sign up the former utility customer

Grid defection THROUGH COMPETITION

Companies like Google are betting big on redefining the energy markets from the viewpoint of the consumer. Their recent acquisition of thermostat maker NEST and home management company Revolv shows Google’s intention to enter the consumers’ homes with new products and services defined around the connected home. As energy is a major cost factor for every home, additional valuable product&services at the right price point are finding open ears with consumers. Google as an example might  eventually control energy usage by influencing temperature settings, allowing Google to enter a demand response market. Ok, the latter might be some years away due to unclear regulations and other concerns. Another use case for Google is the ability to monitor and analyze consumer behavior. How did Google reach its market dominance in the past again?

It becomes clear that utilities seeking to make up lost revenue from energy sales by for example offering demand response programs find that customers already may have signed up with the competition. I spoke to a demand response program manager at a mid-size municipal utility a few years ago. They tried to sign up mid-size commercial and institutional customers for their program trials. However, they often found that these customers already signed up with Enernoc, one of the demand response and energy efficiency power houses.

Electricity is the ultimate form of energy one might think. Like the internet replaced traditional radio, phone, or TV service over dedicated networks, electricity can replace other energy sources especially natural gas. It’s all about price and availability.

Enernoc's home page clearly showing how much money utilities did not make from their customers.

Driver No.3
Are other companies, not utilities or energy retailers, better suited to serve consumers

http://www.smartgridnews.com/artman/publish/Technologies_DG_Renewables/Why-Home-Depot-could-soon-be-in-charge-of-the-power-industry-6677.html

NRG Executive David Crane believes that power generation will be a very competitive business dominated by the private sector. NRG Energy is America's largest solar developer and one of the country's largest power producers. He accepts the threat that this competition might steal significant business from NRG.

It’s a fact that in the US home improvement stores like Lowe’s or Home Depot, retail companies like Costco, Walmart or electronics retailers like Best Buy are marketing, sales, and customer service power houses. They have an advantage in terms of brand recognition and loyalty that is light years ahead of utilities and energy retailers. For example. I visit a Costco warehouse store twice or three times a month! And how often do I contact my utility?

How would the traditional integrated utility or small energy retailer compete with these companies? I do not believe they will be able to. However, there is an opportunity indeed. Utilities and energy retailers who are positioning themselves as trusted advisor, have favorable views in the eye of their current customer base need to take advantage of the opening of the consumer energy marketplace.

In the final part three of the blog, we are taking a look at the opportunities this brave new world offers. Will established utilities and retailers grab it? What should utilities and retailers do? How can enterprise software help now and in the future?

And here for the brave: More details regarding Drivers 1-3 that foster the change of the business model towards consumers' wants and needs:

Driver No 1: Grid defection through renewable energy

Let’s look at some numbers. The 2014 Rocky Mountain Institute study THE ECONOMICS OF GRID DEFECTION” quantifies the effect of increased distributed generation. For example, they estimate when each of the  US states will reach a state called “grid parity”.

You can find the study here: http://www.rmi.org/electricity_grid_defection

To understand the study it is important to understand what grid parity means:
Definition: Grid parity occurs when an alternative energy source can generate electricity at a levelized cost (LCoE) that is less than or equal to the price of purchasing power from the electricity grid.

So, once grid parity is achieved customers can choose to bypass their utility without incurring higher cost or reduced reliability.

In this graph we see the cost of electricity produced the traditional way vs. the cost of electricity through distributed generation resources. The colored boxes tell you when the state reaches grid parity. Even for New York we are just ten years away from grid parity. The findings in short were:

1) Solar-plus-battery grid parity is here already or coming soon for a rapidly growing minority of utility customers, raising the prospect of widespread grid defection

2) Even before total grid defection becomes widely economic, utilities will see further kWh revenue decay from solar-plus-battery systems and early adopters

3) Because grid parity arrives within the 30-year economic life of typical utility power assets, it foretells the eventual demise of traditional utility business models. Grid parity just 10-20 years away even for states like NV, UT, AZ.

As you can see, grid parity was already achieved on Hawaii. Is looking to Hawaii looking to the future of the utility globally?
The local utility is currently in the process of redefining their business model. Just very recently they announced a plan to clear a large backlog of rooftop solar applications.
http://www.hawaiianelectric.com/heco/_hidden_Hidden/CorpComm/Hawaiian-Electric-announces-plans-for-approval-of-pending-solar-applications

Opposing voices say that while utilities will sell less electricity in some cases the gas utility might sell more natural gas for the backup generators customers would need. Who knows? Utilities limited by a tight regulatory framework are floating the idea of raising electricity prices to make up for lost revenue. However, this would make the business case for alternative energy sources even more attractive and speed up the drive to grid parity.

I would like to mention to other examples in Europe. What is the situation in your country?

• In October 2014, wind power generation alone produced enough electricity to power 126% of the needs of every home in Scotland.
  http://scotland.wwf.org.uk/what_we_do/safeguarding_the_natural_world/index.cfm?7365
• In August 2013, RWE mothballed 3100 MW of generation capacity in Germany and the Netherlands due to sufficient solar energy generation.
  http://www.platts.com/latest-news/electric-power/london/rwe-to-take-3100-mw-coal-gas-plant-offline-more-26183269
• In December 2014, e.on decided to spin off its conventional power business to focus on ‘agility, innovation, and digitalization.’ The one comany will focus exclusively on distributed energy and "empowering customers."  http://www.greentechmedia.com/articles/read/Germanys-Biggest-Utility-Is-Divesting-From-Centralized-Power?utm_source=SmartGrid&utm_medium=Headline&utm_campaign=GTMDaily

Driver No 2: Grid defection through competition

Another example of competition comes from companies like Honda. Currently, they are showcasing a model home in Davis, California that produces more energy than it needs. Agreed, when you read the article in full you will find technology that may be sophisticated in today’s standards. But we thought the same of many other products and services in the past (Google Maps and Street view, Navigation, Artificial intelligence applications e.g. in the NEST thermostat, driverless cars!).

What is the role of the utility when we all have houses like this?
http://www.gizmag.com/honda-smart-home-energy-producing/31380/

Net-zero office buildings are starting to show up in large cities like San Francisco.
As a reaction, just in August this year, the public utility commission in California hinted that “net-zero” might become the building standard within next 10 years. These regulations should further accelerate the drive to grid parity, especially if coupled with increasing energy-efficiency of almost any piece of equipment just about anybody and any company uses. And again increasing amount of distributed generation.

In a previous blog, I have outlined the potential benefit for organizations in setting up measures of internal data protection.

I want to describe in this post what "means" of improving system and data security are available in SAP in general; and introduce two solutions specifically geared at protecting data against available to protect there are in SAP technology

Security in SAP ERP systems

When considering system and data security functionality that SAP standard provides, you might first think of identity management (who has a user) and the role and authorization concept (TCode PFCG). There’s a couple of protective means supported by SAP that, by and large, help to protect networks and systems from outside attacks.

The remaining area, protection against data thefts be insiders, is not covered as well by standard functionality. This is where the two products come in I want to introduce here:

UI Logging (logging read data requests and keeping track of the exact content which was provided via user interfaces) and

UI Field Security (= UI Masking; configurable masking of data values in a user interface).

The technical approach to both solutions is the intercepting and masking/logging of data just before they are provided for display in a user screen. This takes place in the SAP Netweaver Basis with optimal performance and making them quite tamper proof. In addition, both products are rather lightweight and highly configurable, allowing for swift implementation (as a matter of weeks, not months). Specific logic can be introduced by BADIs down to field level. As SAP products, UI Logging and UI Masking are integrated into SAP maintenance.

Let's explore what the use case for each of the solutions is:

UI Masking: the speed limit

The straightforward way to protect data is to technically withhold them from being provided to untrustworthy users in the first place. This can be achieved by other means as well; however these tend to be too cumbersome or not sufficiently granular. In such cases, UI Field Security might come in handy, technically altering data values before they are sent to a user’s screen. The solutions allows you to define which fields (in tables and transactions) are to be protected, and how values should be masked: You might want to fill a data field with placeholders, or replace some parts of a value with masking characters (like you know it from credit card numbers being displayed in websites). All users will by default receive only masked data, except if they are assigned to one exact role configured on field level. Field access trace functionality makes data usage transparent.

The functionality is most widely used to guarantee protection for personal data in HR data (income, contact details, religion, social security number, etc.), and for personal information in customer data. But UI Masking can protect basically every screen in SAP GUI (and other UI channels may follow). Another use case is protection of (productive) data which are migrated into a test system for data quality reasons.

UI Logging: the speed trap

Data protection becomes more of a headache in case you need to keep data widely accessible. This guarantees that a wider range of employees can perform a given role ad hoc.  Imagine a patient collapsing in a hospital corridor: it’s certainly desirable that any medical staff should have access to
the patient data. Open data access also allows users with varied tasks to work more efficiently without having to search for somebody who can help them out with required data. Logging access on user level also increases transparency of data usage.

Logging helps to increases data security in subtle ways. You might compare it to a speed camera setting a strong disincentive that deters would-be speeders. Internal leaks are prevented because potential thieves are afraid of being found out and fined; and through an enhanced “human firewall” because users become more aware of their responsibility to protecting relevant information. Logging also empowers your organization to identify and prove trespassers. With logging you might be able to find out exactly which data was stolen and take adequate measures to manage and minimize trouble. With a logging solution, you might also fulfill legal or internal compliance requirements.

UI Logging provides just this. It determines and documents on UI level which data a user requested and what he eventually accessed, and provides functionality to analyze the log in depth or through reports. Of course, users whose movements are to be logged can be configured just like the scope
what transactions, particular tabs, or explicit fields need to be logged. Again, implementation is very fast, and allows you to add more logic through BADIs.

I hope this short perspective on UI Logging and UI Masking gives you a first impression whether either of these solutions might be useful for you in the context of internal data protection!

You will find more information in our UI Logging channel here on SCN.

Need more information? Want to see a demo or discuss implications? Do you need help in evaluating these solutions against your particular data security requirements?

Please approach your SAP client partner know, or contact us directly under

uimasking@sap.com

uiloging@sap.com

Security is never a sexy topic. It costs money without directly adding value to your business and processes. In the best case, it’s unobtrusive, not requiring huge efforts to run – like that dental insurance you hope you’ll never need.

Alas, security threats are a topic with the potential to cause more harm than a passing toothache. This is particularly true for the information in your  rganization; a critical and valuable asset of your organization – which makes them a potential target for people with criminal intent.

As I have described in a parallel blog, the threat is real and tangible:

• data security issues are (not very surprisingly) quite often perpetrated by insiders, not just hackers.
• The probability to fall victim to an attack is not very high these days; but it looks prone to rise over time.
• damage associated with data theft is hard to nail down; but it can quickly reach painful levels or even threaten an organization’s existence.

In this light, it is worthwhile to think about ways to mitigate the risk posed by insiders bent on stealing data. As Wirtschaftswoche (Business Weekly, a German print magazine) comment, the damage potential can be lowered considerably through “modest” investment in implementing preventive measures.

http://www.wiwo.de/unternehmen/industrie/wirtschaftskriminalitaet-grosse-angst-vor-datenklau/11069402.html)

I tend to agree to the statement because of the following considerations:

1. Invest in “preventive” measures. The best data security leak is the one that doesn’t happen. All others are bad – to different degrees. As a second best, you might consider measures that help manage and mitigate the damage: If you can at least detect and plug a leak early, the fallout might be easier to manage. Worst case is that someone else detects the issue and you can’t identify the source, or even tell what information you lost.
2. This point is more involved. But it appears credible that the damage potential can be lowered “considerably” with “modest” measures. A finding by KPMG is that 70% of respondents see themselves at “low” risk of a data leak (but 82% see others at high or very high risk). If the truth lies somewhere in between, this discrepancy in perceived risk implies that organizations tend to underestimate their own risk exposure. This could lead to a structural risk because organizations overestimate their own security measures, and systematically underinvest in further protection. And indeed: KPMG point out that 85% of respondents think they are well protected, and most (89%) were not considering sizeable investment (the equivalent of a nice middle class car) into data security. If this situation has already persisted over a few years, we can assume organizations (at least in Germany) are in fact not well protected, and there should be low-hanging fruits to be obtained, i.e. sizeable increases in data security protection at relatively low cost.
3. Before we are completely submerged in academic reasoning, let me come to the third point. It appears most reasonable to stipulate investment into measures decreasing the risk of internal data leaks. As I have pointed out in another blog, SAP standard software provides quite a few measures against external attacks, but is not prepared to protect against malicious insiders (currently, only UI Logging and UI Masking are available that could provide relevant functionality).

In this light, the suggestion from Wirtschaftswoche seems to be a sound one. Maybe the main message is, though, that organizations should shed their current appearance of complacency, come to a realistic notion of their risk exposure, and take appropriate measures if required.

In the first and second part of the blog, we talked about the situation and developments that are causing massive revenue losses with the traditional business models that are in place.In this third and last part of the blog, we are discussing what utilities and retailers should change and plan on doing to master customer engagement and retain their position as trusted consumer-focused advisor for energy and water questions and services.

Part 1: The global trend of shrinking revenues & margins, disrupting technologies with the consumer at the center

Part 2: Meet the competition that may better understand and serve the consumer

Part 3: “Innovate and partner” - What utilities and retailers can do and how enterprise software can help them win.

Who is to blame for all the misery the current players in the energy markets are facing? Who is demanding change when it comes how we generate and use energy? The cuplriit is clear. It is consumers, no matter, where they live, how old they are, no matter their circumstances.

Many utilities and retailer are realizing that it will be hard if not impossible to isolate themselves from the changing landscape of declining revenues in their traditional business while consumer desires and competitive pressures are increasing. In fact, they are realizing that the consumer gives them the opportunity to succeed.

So far I have seen three ways utilities and retailers react:

1. Adjust the corporate strategy and change corporate culture where ALL departments focus on consumers and take into account how their actions affect consumers (even the meter shop). 
2. Split the company. One part only focuses on engaging with consumers.
   As stated in part two, on December 4 e.on announced their decision that their current corporate structure will not be suited to be successful in engaging consumers. They split off a separate company to concentrate on this part of the business. Is this a glimpse of the future?
3. Do nothing.
   Analysts agree that electric utilities could be reduced to wires companies who will focus on safety and reliability of the grid, on transmission and probably generation as well to some degree. However, such a wires company will have very limited amount of customer interaction.  The consumer engagement would be provided by today’s successful retail companies like electronic stores, warehouse clubs, home improvement or supermarket chains

BTW: Are you working at a regulated utility in a customer service or marketing role at the moment?
Well, I am employed by a vendor serving your needs. Utilities as mentioned in 3. probably do not need these functions anymore in the future. What does that mean for our jobs?

What should utilities and retailer now actually do?

Let me list concrete activities that I believe the consumer-minded utility and retailer should consider:

1. Understand who your customers actually are. Understand what you offer to consumers.
For traditional vertically-integrated utilities in any sector, the answer to these questions might not be that obvious. For example, utilities today offer various products, programs, and services which often are designed, marketed, and sold in organizational silos or via 3^rd party service providers. This situation can cause suboptimal execution, an incomplete consumer engagement strategy, and a bad customer experience.

Your potential customers are not only the bill payers but also whoever uses energy, water or any of your services or programs in the premises. This group can also include the household’s children, home services providers like cleaning staff, plumbers or electricians. As one utility put it: “Anyone who can flip a switch is a customer.” You could also say, anyone who can turn a faucet. I know my 16 month old son can!

Also customers come in different roles: Bill payer, Premise occupants, Prosumer, ...


Portfolio of today’s utilities and retailers

2. Accept the premise that you are in the business of acquiring customers.
Likewise, accept the premise that you can lose customers.

Traditionally, utilities and retailers are quite good at taking care of customers they have. Acquiring customers and reducing churn are terms not common especially at vertically-integrated regulated utilities.  Accepting this premise can greatly help change the corporate culture to one that is focused on the consumer.

3. Innovate and partner.
Michael Valocchi from IBM believes utilities and energy retailers need to embark on a roadmap from the energy provider of today to a solutions provider. In other words utilities and retailers need to

1. bring to market products and services consumers want
2. partner with service, technology and retail partners
3. Embrace innovation and cherish the relationship to consumers

http://www.economistinsights.com/sites/default/files/EIU%20Utilities%20and%20customer%20connection%20Feb2014.pdf

4. Excel in operational efficiency in existing agent-assisted and self-service channels
This has always been at the center of customer service. Be aware that utilities need to keep the focus on operational efficiency to free up resources and tackle new ventures.

5. Understand the customer journey from discovery to purchasing to servicing and the various touch points that matter.

Utilities need to understand that a customer need and want develops not only when looking at the consumption bill. It is important to understand different customer journeys and identify relevant touch points that pose an opportunity to inform or sign-up the customer.
For example, a customer journey might begin when someone googles new homes in the area or is shopping for home improvement equipment or materials (e.g. new air conditioner or weatherization materials). Another one could be a building developer applying for temporary power for the construction site of a new apartment building (inform about energy-efficient buildings right then). The utility’s services are probably not on the consumer’s radar but they could matter at that point in time.

6. Devise a plan to create long-lasting customer engagement via an omnichannel strategy.
Customer journeys from discovery to purchase to service are cycles that require constant listening and engagement. Each touch point represents a potential opportunity to engage. Since there are many of them, the utility can create  long-lasting engagement cycles which foster brand recognition and loyalty.
At each touch point it is important to know the customer situation at this very moment and how the individual customer can be assisted. Rather than a one-size-fits-“nobody” approach, a personalized recommendation with information only relevant in the particular situation of the particular customer is valuable information.

Enterprise solutions can help.

As one can easily understand, meeting these requirements afford a large amount of automation, as well as flexibility and agility to adjust. SAP’s integrated but modular customer engagement solutions can help you cover these requirements:

At SAP we believe that utilities and retailers need to understand three important stages of the customer journey:

1. Onboarding the customer
2. The purchasing process
3. Servicing the customer you have

1. Onboarding

The basis for customer engagement is and has always been to know as much as you can from the customer and the context he/she is in at all times. This means that the “360 degree view of the customer” is as important as ever.

A common data platform is required that can house data from any source like ERP, CRM, Web pages visited, consumption behavior, disaggregation results (e.g. determining list of household appliances from the customer’s consumption profile), outage information, social profiles, service history, billing history, complaint history, channel usage, operations on connected things and any other data from any data source. Also, this data platform needs to be really, really fast since it needs to serve up this customer profile as soon as the customer reaches a certain touch point (e..g. googles certain keywords, enters a the utility’s home energy center, browses programs, attempts to pay his bill online, attempts to sign up etc). SAP has been working to build on our HANA in-memory technology to deliver a real-time data platform for Utilities.  First applications from SAP and partners are now available and on the roadmap.

Then you need software that monitors the various touch points.Here are some examples.

This is where our portfolio of customer engagement & commerce solutions come in. This set of new solutions also includes the hybris omnichannel platform. As the name says, this platform brings together any channel and allows the utility to know when customers reach a certain monitored touch point and react accordingly. As said before, this could be a customer searching with certain keywords on the web, visiting a consumer advice portal , entering the utility’s home energy store etc.

New marketing solutions provide a way for the marketer to quickly react to outside triggers for example. The marketer can create new promotional products, initiate customer communication or a place an online ad within a short timeframe while ensuring after-sale processes like delivery or billing continue to perform flawlessly.

2. The purchasing process

Skeptics may say “Utilities do not have web shops”. Of course they do!

They just don’t use these words or put shopping carts on their self-service sites.

I like the British Gas - ahem - "web shop". Although not ideal, it starts off the right way on the home page with "How can we help you?"

I believe however that as a customer it would be much easier for me understand what services the utility or retailer offers if they indeed had somewhat like a web shop. IMHO, the utility web shop is a web site that lets me browse their product catalog which might include their rate plans, Energy-Efficiency programs, informational brochures, videos or webinars etc. Maybe, I can buy a ticket to visit their smart home center there too in the future. Moreover, since utilities and retailers increasingly working with service providers it is paramount to include the communication to 3^rd parties in the overall purchasing process. Especially, when the process of purchasing also means selecting and communicating with a service company or contractor as well as maintaining or installing materials or equipment.

The hybris omnichannel platform at its core delivers the one product catalog and a central place to manage any product, service or program the utility offers (along with descriptions, images, videos, etc). hybris makes then the product catalog available consistently across all channels. Also, hybris provides the tools to build, maintain and operate a web site with their web content management tools. Voila, finally the one place I can go to see how the utility or retailer can help me solve my issue and make intelligent recommendations. And one tool for the utility or retailer to manage the customer experience.

hybris: A modular homogenous omnichannel platform

3. Servicing the customer you have

Utilities and retailers have traditionally focused large investments in this area. And this area remains very relevant.

In this area of customer engagement, the utility and retailer should already DO THREE THINGS TODAY:

    a)Offer Customer Self-Service on any device, any channel
     SAP cas help you cost-effectively run self-service applications (e.g. mobile or web apps) that are tightly connected to SAP and        non-SAP systems (like SAP      ERP/ISU, SAP CRM, outage management systems etc). Look here to learn more about our           SAP Multichannel Foundation for Utilities and the self-service apps that ship with this solution:

    b) Delight Customers With Engaging Content
      Utilities and retailers need to consider themselves media companies. A wide variety of content needs to be managed from      brochures to video content. Depending on the communication channel to the customer utilities need to deliver the right      message in the right format. This is where SAP Enterprise Document Management from our partner Opentext delivers the best      functionality.
 

At our last Utilities conference, Opentext presented how Detroit Edison revamped their SMB Utility Bill by making it interactive so customers can click in it to get more information. This web-based bill also allows Detroit Edison to insert the most relevant marketing content at the point in time when the customer accesses the bill online (another touch point of the customer journey well managed  )

    c. Establish “Social media” as an interaction channel
    Social media is a valuable channel to interact with consumers. It’s especially valuable since consumers use social media      anyway and there is no need to train them to use a special way to communicate to the utility. It is rather the other way around.      The utility or retailer needs to “go where consumers hang out anyway”.
     For example, you can use social media to better manage customer service operations, crises situations like outages, or      communicate better in light of planned infrastructure projects.   
     Let’s learn from T-Mobile how they are using social media to improve customer engagement and service:

Click here to watch: T-Mobile Engages Customers Like Never Before with SAP and the Cloud - YouTube

With this I would like to close the blog series. Let me know what you think. What’s important you’re your point of view? It is probably easiest to start by posting a comment.

Here at SAP we are continuing to enhance our set of customer engagement tools to help utilities and retailers globally excel in customer engagement. More information about this shall follow on this channel early next year!

APPENDIX: Other stuff I found useful.

http://www.coned.com/newsroom/news/pr20140519.asp

UtilityDive study: The state of the electric utility 2014: http://www.utilitydive.com/library/2014-state-of-the-electric-utility/

…created every 60 seconds…if you are not listening, you are missing opportunities…

The new training course covering the SAP Multichannel Foundation for Utilities is now available for North America as well. We are planning to offer the first session on Feb 9 – 10, 2015, at the SAP Labs office in Montréal, Canada (see link to Google Maps).

Remember the SAP Multichannel Foundation for Utilities is a customer-facing platform based on SAP Gateway that makes it a lot easier for utility companies to interact with their customers through different channels, e.g. web (online self-services), mobile, and social networks. Numerous OData services tailored to relevant business processes from the utilities industry provide both read and write access to the SAP Business Suite for Utilties (IS-U on ECC side and CRM for Utilities). Its latest version (1.0 SP03) also comprises a new, attractive sample user interface following the responsive web design principle (see blog for details).

During the new training course, you will get all relevant information for a smooth and successful implementation of the SAP Multichannel Foundation for Utilities 1.0 SP03. You will gain knowledge in the areas of solution architecture, extensibility, and deployment options.

This training course is aimed at project managers, consultants, and key users who are in charge of the implementation and support of SAP Multichannel Foundation for Utilities. Please also note the recommended training courses GW100 SAP Gateway Building Data Services, WDE300 Developing UIs using HTML5 Fundamentals, and WDE360 Developing UIs using HTML5 and SAPUI5.

Soon you will be able to reserve your seat at the first North American training class under https://training.sap.com, just search for UMC – this webpage allows you to sign up for WDEUMC training sessions with the same content offered in Europe, too. They will take place in 2015 e.g. in Walldorf on March 19-20, June 22-23, Oct. 5-6.

In the meantime, feel free to contact michael.ernzerhoff@sap.com or william.eastman@sap.com for any questions.

Admittingly, it is not always easy to find out what SAP is developing and if it is worth doing an upgrade or not!
Or you, as an SAP customer and partner, might just want to be informed about what new functionality was delivered with a certain release or enhancement package.

With our new Innovation Discovery tool - part of the SAP Service Marketplace - we would like to make your life a lot easier.

(SAP Service Marketplace is just for customers and partners: read what it is and how you can get access SAP Service Marketplace Overview and FAQ)

By the way, a nice feature is the fact that you can download or share these innovations with colleagues (see end of blog).

By showing you two examples from the Utilities Industry, I would like to illustrate how best to search:

Access the Innovation Discovery tool:

Either directly: http://service.sap.com/innovation-discovery

Or:

1. Go to the SAP Service Marketplace.
2. At the top of the page, choose Improvements & Innovation.
3. Choose Log in here.
4. On the left-hand side, choose Innovation Discovery for SAP Products.
5. On the right-hand side, under Access, choose Start Application.
   You can see that there are ... innovations.
6. Now you can choose:
   • for Utilities innovations, Industries --> Utilities and then close the window again.
     You will see 433 innovations (in the orange box) on the right top part of the screen.
   • for other innovations, choose the industry or areas of responsibility you wish to search for.

Example 1 - How to find CRM - Multichannel Foundation innovations.

1. In the Search for all innovations field at the top left, enter multichannel.
   
   Click to enlarge the graphic.
   
2. Then choose Search by Selection at the top right.
   
   This takes you to the list of the already delivered two Utilities Multichannel innovations.
   
3. For more details, you can then click on the tiltles of each innovation and select the individual Product Features.
4. You can also filter by product versions and Enhancement Package.
   
5. Go back to the entry page, by choosing the Home button.
   

Example 2 - How to find EAM usabilty innovations.

1. In the Search for all innovations field at the top left, enter eam usability.
   A list of 17 innovations appears.
   
   
2. Click on the first title (Usability improvements in the SAP Enterprise Asset Management Solution).
   Here you can see, for example, if this innovation requires additional licenses, in this case it does not.
   
3. For further details, such as more screenshots, demos and presentations, click on the third product feature (Enhancements for Maintenance Orders).
   
4. You can download the contents or share this link by choosing one of the following options on the top right side of the page.
   

Have fun discovering our innovations!